Georgian Energy Development Fund

Renewable Energy Match-making: Best practice examples of RE&EE project finance

Nugzar Khaindrava 13/11/2018 Table of contents:

1. Background 2. GEDF’s activities 3. GEDF’s Portfolio 4. On-going Projects 5. Project Initiation Process 6. Cooperation schemes with GEDF 7. Conclusions Background

Government of Georgian Energy Development Fund (GEDF) is a joint stock company established by Government Ministry of Economy and of Georgia (GoG) on December 13, 2010. in order Sustainable Development to promote and develop clean energy projects in of Georgia the country

Director GEDF is managed by the Ministry of Economy and Sustainable Development of Georgia and Project Project Support serve as an investable vehicle in clean energy Finance & Management and and project development in Georgia. Investment Development Administration

Project GEDF supports clean energy project development Public and investor relations Management Legal Department either though early project development investment and/or through an offering of the government’s shares in GEDF to potential Research & Contractor Financial Analytics investors Development relation

Budgeting & Technical Administration Reporting expertise GEDF’s activities

Parties involvement in project development & Core activities of management processes Georgian Energy Development Fund

Identification and analysis of potential “greenfield” sites including river- basin planning – and investigation of other renewable energy projects

Finance initial costs related to the development of identified energy Involvement projects

• Jointly – with a private investors – develop projects with an exit option for the Fund at various stages of development; • Support developing energy projects; • Facilitate project investment promotion; • Support potential financing arrangements with international financial institutions and/or private financial entities

Project lifecycle

GEDF’s involvement

Investor’s involvement GEDF’s Portfolio

Reconnaissance Enguri PS Project DevelopmentProject Study HPP

HPP Pre Feasibility & & River Enguri River Projects Study Wind River Mtkvari Basin Basin 150 MW Project Basins River Basins Screening Screening 50 MW Chordula Torzila HPP Feasibility Wind Wind Chala HPP HPP 2MW 2 MW Study Project Project 6 MW 160 MW 100 MW

Project ImplementationProject Basic Design HPP Cascade Artana Namakhvani 30 MW Tender CCGT Solar Project Lopota HPP HPP Cascade Documentation Tsablari HPP 500 MW 5 MW 10 MW 433 MW 17 MW

Construction JV with partners

Gori Wind Under GEDF’s development Operation Shilda HPP Dariali HPP Farm 5 MW 108 MW 20 MW Exited projects by GEDF GEDF’s share

• Installed capacity: 433 MW Namakhvani • – Region 100% • Negotiations with Investor

• Installed capacity: 10 MW Artana-Lopota • Region 20% • Licensing Stage • Installed capacity: 6 MW Kvirila • Region 20% • Feasibility Stage

• Installed capacity: 2 MW Torzila • Imereti Region 100% • Feasibility Stage • Installed capacity: 2 MW • Racha Region Chordula • Feasibility Stage 45%

• Installed capacity: up to 12 MW • Samtskhe- region 100% • Feasibility Stage GEDF’s share

• Installed capacity: 20.7 MW Qartli WPP • Shida Region 51% • Operational Stage

• Installed capacity: 50 MW • Region Nigoza WPP 15% • Negotiations with the Ministry

• Installed capacity: 120 MW Central WPP • Imereti Region 15% • Feasibility Stage

• Installed capacity: 100 MW Qartli 2 WPP • Shida Kartli Region 100% • FS completed

• Installed capacity: 50 MW • Imereti Region 10% WPP • Feasibility Stage “Udabno” Solar Power Plant 5 MW

Site Locations : Kakheti Region, v. Udabno

Project total Installed capacity: 5 MW

Panels Info : To Be Determined

P 50 Net Generation / CF : 6 900 000 kWh

Project Cost : 4 500 000 USD

Feasibility Study completed Project Initiation Process

Project Initiation by GEDF Project Initiation by Investor

•Investors write letter of Intent specifying: Tender Opening and Investor •The projects they want to cooperate on and the intended way of cooperation. Selection – The tender for the investor Letter of •Information about the investor, their background and their view about project selection will be governed based on the Call for investor Intent implementation plan. rules and criteria's published by GEDF on MOU / PPA - Ensured the official Web Page (The investor •GEDF and Investor/project developer sign Non-Disclosure Agreement and share all proposing the most favorable exit Terms Continuity of the project NDA and the available information on specific projects for the Fund will be awarded ) – The Investor will be Informatio •If needed site visits and discussions are made to evaluate projects MoU with GoG obliged to Obtain the n Sharing Construction MoU and Investor selection the PPA during the previously agreed time •GEDF conducts technical, financial, legal and any other (if required) investigations period Due of the proposed case diligence Investor’s Shareholder •Investor and GEDF make decision on the way of cooperation and projects to commitment Agreement cooperate with Bank Guarantee - The •Investor and GEDF sign shareholding agreement/ service agreement. Terms of Agreement Selected Investor will be agreement are negotiable from project to projects. obliged to submit the Shareholder Agreement - The Bank guarantee in JVC Basic terms and Conditions of the amount of the necessary Shareholder Agreement will be •Special purpose vehicle is established for further activities to be taken under also published on the official Shareholder Agreement considered (agreed in the JVC – The Joint Venture Company SPV Web Page of the Fund along with shareholders agreement ) will be governed based on the the requirements; The Details will equity contribution rules and principles and equity be agreed with the selected within 5 (five) working contribution issues previously investor. days from the MoU /PPA agreed in the shareholder signature Date. agreement. Cooperation schemes with GEDF Conclusions

• GEDF supports development of clean energy projects;

• GEDF finances initial costs related to the development of identified energy projects;

• GEDF has an exit option from Joint Venture at defined stages. Thank you for your attention!

E-mail: [email protected] Web page: www.gedf.com.ge